Prohibition of Inducement and Acceptance of Gratification

The Registrar of Pension Funds published, for comment, a draft Directive to determine conditions in respect of inducements and acceptance of gratification to ensure compliance with and to prevent contraventions of the objectives of a board as determined in terms of section 7C of the Pension Funds Act.

The purpose of the Directive is to determine conditions to be imposed by the Registrar in order to combat and prevent bribery and corrupt conduct by board members, principal officers, deputy principal officers, auditors, valuators, administrators or service providers to a retirement fund. Any such involvement will have a bearing on such persons’ fitness and propriety to hold office.

Gratification is defined as:

money, whether in cash or otherwise;

any donation, gift, loan, fee, reward, valuable security, property or interest in property of any description, whether movable or immovable, or any other similar advantage;

the avoidance of a loss, liability, penalty, forfeiture, punishment or other disadvantage;

any office, status, honour, employment, contract of employment or services, any agreement to give employment or render services in any capacity and residential or holiday accommodation;

any payment, release, discharge or liquidation of any loan, obligation or other liability, whether in whole or in part;

any forbearance to demand any money or money’s worth or valuable thing;

any other service or favour or advantage of any description, including protection from any penalty or disability incurred or apprehended or from any action or proceedings of a disciplinary, civil or criminal nature, whether or not already instituted, and includes the exercise or the forbearance from the exercise of any right or any official power or duty;

any right or privilege;

any real or pretended aid, vote, consent, influence or abstention from voting; or

any valuable consideration or benefit of any kind, including any discount, commission, rebate, bonus, deduction or percentage.

About Paul Kruger

He is both editor and writer-in-chief of the Moonstone Monitor, the Moonstone Investment Indicators and the Moonstone Online website. After 35 years in financial services, he is as passionate about the industry as he is about sport, wine and music.